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Subjects · Leaving Cert Business

Leaving Cert Business: Sources of finance

How often Sources of finance comes up on the Business papers, every year it was asked, and questions to try.

HL Asked on 8 of the last 10 Higher Level papers, most recently in 2025. most years

OL Asked on 10 of the last 10 Ordinary Level papers, most recently in 2026. banker

June 2027 is the first exam on the new Business course. These come from the 2016–2026 papers, so read them as a guide.

Sources of finance, Higher Level(6 marks)

Quick ones on Sources of finance.

(a)Buying goods from suppliers and paying later is…
  1. Factoring
  2. Trade credit
  3. Leasing
(b)Delaying payment of bills already owed, such as ESB, is using…
  1. Grants
  2. Retained earnings
  3. Accrued expenses
(c)Under a lease, who owns the asset?
  1. The leasing company
  2. The bank
  3. The business using it
Show the answers

(a) Trade credit

(b) Accrued expenses

(c) The leasing company

Your turn: Higher Level questions on Sources of finance.

Higher Level

Asked on 8 of the last 10 Higher Level papers, most recently in 2025. most years

Every paper, year by year

YearWhere it came up
2026Not asked
2025Section 3 Q7
2024Not asked
2023Section 2 ABQ
2022Section 3 Q7
2021Section 3 Q8
2019Section 3 Q5
2018Section 1 Q4
2017Section 3 Q7
2016Section 2 ABQ

Links open the State Examinations Commission’s paper for that year.

More Sources of finance questions

Sources of finance, 2 marks

A long-term loan secured on property is a…

  1. Overdraft
  2. Lease
  3. Mortgage
Show the answer

Mortgage

A mortgage is a long-term loan, often 20 years or more, secured on property. If the borrower fails to repay, the lender can take the property and sell it.

Sources of finance, 2 marks

Selling new shares to existing shareholders, in proportion to their holdings, is a…

  1. Debenture issue
  2. Rights issue
  3. Public flotation
Show the answer

Rights issue

A rights issue offers existing shareholders new shares, usually at a discount, in proportion to their holdings. If they take the shares up, control of the company does not change.

Ordinary Level

Asked on 10 of the last 10 Ordinary Level papers, most recently in 2026. banker

Every paper, year by year

YearWhere it came up
2026Section 2 Q9
2025Section 1 Q12, Section 2 Q6
2024Section 2 Q9
2023Section 1 Q15, Section 2 Q6
2022Section 2 Q6
2021Section 2 Q7
2019Section 2 Q7
2018Section 2 Q8
2017Section 2 Q5
2016Section 2 Q5

Links open the State Examinations Commission’s paper for that year.

More Sources of finance questions

Sources of finance, 2 marks

An agreed facility to take more out of a current account than is in it is an…

  1. Mortgage
  2. Debenture
  3. Overdraft
Show the answer

Overdraft

An overdraft is short term finance for a temporary cash shortage, such as paying wages before customers pay their bills.

Sources of finance, 3 marks

Which source of finance best suits buying a delivery van to be used for years?

  1. Trade credit
  2. A medium term loan
  3. A bank overdraft
Show the answer

A medium term loan

Match the finance to the asset. A van lasts several years, so a loan repaid over several years fits; an overdraft is only for short gaps.

Sources of finance, 2 marks

A long term loan used to buy premises, secured on the property itself, is a…

  1. Mortgage
  2. Overdraft
  3. Trade credit
Show the answer

Mortgage

A mortgage runs for many years. If the borrower does not repay, the lender can sell the property to get its money back.

Other Business topics

All of Leaving Cert Business